The Cost of Racism

In a briefing released in March 2025, we argued that the inefficiencies caused by systemic racism – from avoidable hospital admissions to workforce discrimination – place unnecessary strain on an already stretched NHS. Addressing these disparities should lead to a healthcare system that is more equitable, efficient, and accessible for all. We also argued that by shifting resources toward preventing the root causes of racial health inequities, we can improve outcomes and the financial sustainability of the NHS. 

We have now launched a wide-ranging programme of work to more deeply explore the cost of racism. This ambitious new initiative will seek to examine the costs of racism both at a national level, exploring the many ways in which racism can lead to economic cost, and also at a more granular level, working with specific services to conduct cost-benefit analyses for efforts to tackle racism at a patient level. In this first phase, the work will be split into three projects:  

• The Cost of Racism – building a conceptual frame to explore, map, and estimate the economic costs of racism in health and health care in England 

• The Cost of Racial Inequity in Maternal and Neonatal Health Outcomes – A focused study exploring the costs related to inequitable outcomes in maternity and neonatal services for Black, Asian, and minority ethnic service users. Unlike the core study, this project will not isolate racism as the cause of the costs.  

• Understanding the cost of ethnic inequities in type 2 diabetes diagnosis, management, and healthcare utilisation in England: A Cohort Study Using CPRD Data 

Together, these projects will form part of a growing body of evidence demonstrating that, as well having a severe human cost, racism and race inequity also lead to significant and avoidable cost to the healthcare service and our economy.  

These projects will begin to report in Autumn 2026.